- March 30, 2020
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1.0 Executive Summary 4
1.1 Mission Statement 5
2.0: Company Formation 5
2.1 Business Description 5
2.2 Business Location 6
2.3 Official Launching of the Business 6
2.4 Business Products and Services 6
2.5 Business Justification 6
2.6. Industry 7
2.6 Legal Framework 7
2.7. Business Goals 7
2.8 SWOT Analysis 7
2.9. Macro-environment 8
3.0: Products and Services Promotion 9
3.1 Promotion Strategies 9
3.2 Mission 9
3.3 Marketing Objectives 10
3.4 Financial Objective 10
3.5 Marketing Mix 10
3.6 Service 11
3.7 Competition 12
4.0 Market Analysis 12
4.1 Market Demographics 13
4.2 Market Trends 13
4.3 Market Growth 14
5.0 Implementation Strategy 14
5.1 Establishment 14
5.1 Construction 15
5.2 Purchase of the Equipment 15
5.3 Recruitment of Staff 15
5.4 Launching the Business 15
5.5 Possible Setbacks 15
6.0 Organizational Management and Structure 16
6.1 Business Objectives 16
6.2 Organization Structure 16
6.1.1 Managers 16
6.1.2 Supervisors and Section Heads 17
6.1.3 Other Staff 17
6.2 Organizational Constitution 17
6.3 Legal Framework 17
6.4 Training and Promotion 18
6.5 Other Factors 18
7.0 Financial Planning 18
7.1 Financial Objective 18
7.2 Initial Capital 18
7.3 Business Setup 18
7.4 Business Operation 19
7.5 Contingencies 20
7.6 Controls 20
7.7 Financial Forecast 20
7.8 Financial Reporting 21
8.0 Exit Strategy 21
8.1 Factors for Exit 21
8.2 Closure Procedure 22
8.3 Dissolving the Assets 22
8.4 Averting Closure 22
Inthis chapter , a family business whose goals andobjectives is to provide energy solutions to existing companies andfor start-ups will be explained. The name JB-energy is a combinationof John Benson as the family name and energy as the area where thebusiness focuses on. The organization targets an annual profit of 1million dollars during the first one year.
Productsand Services Promotion
Thischapter will cover the marketing aspect of the business’ servicesand products that it offers. Competition issues which will also bediscussed under this section. The business is expected to be bothlocal and international in both long term and short term objectivesrespectively.
Thissection will describe the possible market for the business whichentails small and large scale companies, the government sector, andprivate homes. The demographics and market audience will also bediscussed. Notably, the audience comprises of managers to the bigcompanies, people who own homes and established business owners.
Underthis chapter, the flow which the business will follow for successfulimplementation will be analyzed. This will entail all the legalframeworks and the process of reaching out to the target market andaudience.
OrganizationalManagement and Structure
Thissection describes the business culture and structure which will aidin achieving its set priorities. Possible challenges in themanagement will also be described and the profound strategies toavert them. Workforce management and diversity will also be describedin this chapter.
Thissection provides a detailed analysis of all financial matters relatedto the business. This will include the budget and projected returns.
Thiswill involve the process of bringing the business to an end. Theentire procedure will be integrated into the company’s frameworkand will involve all legal procedures as well as sharing of theassets and finances. Also discussed under this chapter are thepossible reasons which may prompt the closure of the business and howto avert them.
Toprovide efficient and effective energy solutions to all our customerswhile promoting and maintaining a profound relationship with all ourclients
JB-Energyconsultants offer expertise in all situations regarding energy. Suchinclude information on the current and technologically advancedenergy solutions to replace the old methods that are increasing therate of energy consumption. As the world is shifting towardsrenewable sources of energy, so does this business which among itsproducts and services are solar panels and energy saving lightingtubes. The company also offers energy audit services where, based onthe customer requirements, an evaluation of energy issues andconcerns as well as how to improve the sector is offered.
Thecompany is located in Ohio, United States but intends to expandinternationally in future.
2.3Official Launching of the Business
Itis expected that the business will begin its operation in April 2017upon completion of all infrastructure and acquisition of thenecessary equipment. This also allows for adequate time to recruitexperts in this field and effective marketing of the business topossible clients.
2.4Business Products and Services
JB-Energywill offer the following products and services which have becomeimperative in the current world as a result of energy-relatedconcerns such as pollution and shifting towards renewable sources ofenergy.
Conducting energy audits in all companies including private and government,
Proposing new and improved products to reduce the increase in energy consumption,
Conducting an audit to new businesses and homes on energy related issues,
Selling and installation of energy-related products such as generators and solar
Offering training to companies and individuals on issues related to energy.
Thecurrent world is conscious of energy-related issues. Companiesespecially those that deal with manufacturing are incurring hugecosts as a result of high energy consumption (Ellabban, Abu-Rub &Blaabjerg, 2014). The world is now shifting towards renewableenergies such as wind and solar which are described as advantageoussince they are low on emissions. These emissions are the primarycauses of global warming and climate change. There is a lot to bedone in the energy sector thus this business will offer employmentopportunities as well as research and development which mightintroduce new and improved concepts for the future.
Thiscompany is registered as private under consultants and productsdelivery. The business anticipates rapid growth offering theflexibility of opening a training institution that is energy relatedas well as expanding internationally.
Thebusiness acknowledges all the legal issues and procedure affiliatedwith opening an organization, and this has been put intoconsideration right from the start (Carrol & Buchholtz, 2014).Additionally, labor laws are followed in the recruitment and workingrelationships with the workforce. In consideration also are thenecessary documents such as permits and licenses which are imperativefor the business operation
JB-Energyaims at achieving the following
Good customer relationship
Increase in the number of customers
Become among the top employers globally and a benchmark to others.
SWOTanalysis of the company, an acronym for strengths, weaknesses,opportunities and growth is essential to understand the businessenvironment and ways in which the management can avert issues relatedto weaknesses and threats (Culp et al., 2016). Essential to note isthe effective adoption of several strategies such as maximization ofstrengths and opportunities while reducing threats and weaknesses
New business thus attracting many customers
Operating through the latest technology
Anticipation of a diversified expertise workforce
Huge investments thus effective operation from technological factors to managing systems
Stiff competition from existing businesses
Huge costs on issues regarding legal frameworks
New personnel will require a high salary scale.
Challenge to venture into an already saturated market
Expansion of international operations
Opening other outlets locally
Venturing into a training institution
Closure as a result of poor performance
It is a new business thus challenging to integrate into the corporate world
New competitors with advanced technology in future
Inany business, one of the most important aspects to consider is theexternal environment that will affect the company. This is mainlyevaluated through PESTEL analysis. Most important to consider arepolitical, economic, environmental, legal, technological and socialaspects (Kononovicius, Gontis & Daniunas, 2012). With regards tothe recent elections, political issues are uncertain similarly to theeconomic factors. Socially, it is essential to consider employing adiverse workforce. To enhance the reputation of the business, it willinvolve providing a suitable working environment. In theenvironmental issues, the company is obliged to observe all theenvironmental regulations. Equally, considering the technologicalfactors, there is rapid change in technology which therefore impliesthe need to regularly evaluate the operation of the business andadopting technologically advanced products and services
3.0:Products and Services Promotion
Thebusiness employs a strategic approach to marketing its products andservices. With a diversified operation, this company will focus onall areas as the management believes in professionalism across allsectors. Besides, the organization will be operating with anexperienced marketing workforce that profoundly introduces theproducts in the market and establishing new distribution channels. Asnoted earlier, the business is currently aiming at the local market.In this regard, target audience as described in the market analysiswill include organizational managers, homes, and start-up businesses.
JB-Energyaims at offering best services to its clients. Besides, theorganization will focus on maintaining a good relationship between itand the clients which will assist in bringing in new customers.Through offering high-quality expertise in the market development andalternatives to the energy products and services, there is a chanceof expanding globally (Alvesson & Sveningsson, 2015). It willalso be essential to avert possible risks while working effectivelywith people of diversified backgrounds. There is also a need for theorganization to maintain a financial balance which will aid inachieving the 2 million dollars profits within the first one year.
Toensure a smooth flow of the products and services across all markets,the company is described by the following objectives
Integrating the organization with experts. This will assist the business in being quoted in the main trade press and attaining a good reputation. The specific and measurable objectives of the organization include being established as a global energy advisor across all sectors. This will also aid in increasing the number of customers rapidly.
Establishing a strong brand name. Under this objective, the business aims at building its name such that it will be a reference to most clients.
Achieving at least 1000 home based clients locally in both homes and companies. Based on the time element in the SMART framework, within the first one year, the business should record at least 1000 clients who will be growing with time to include new ones
Thebusiness aims at achieving a profit of 2 million dollars by the endof the first year. This translates to a 20% gross profit. The grossmargin should be higher than 70%
Themain strategy employed at this point is that of 4Ps: product,placement, price and promotion (Ke & Li, 2015).
Product:It is obvious that the current market is flooded with new andimproved markets. However, JB-Energy ensures its products are of highquality. The business will also ensure a one-year warranty on all itsproducts upon technical issues. Besides products, the business willalso be offering services such as conducting energy audits. In thisregard, the reports will be delivered in time with every detail beingconsidered as well as proper interventions and recommendations.
Placement:This option will be the foundation of the business it will involvethe use of advertising, public relations, sales promotions andspecial offers. Considering the advertisement option, it will involvethe use of media and online platforms. Since it is a new business,more finances will be directed towards advertisements and especiallythe television commercials. In consideration also will be the socialmedia which has been noted currently as one of the most effectivemedium in marketing. This will entail the use of Facebook, Twitter,and YouTube. Another aspect to consider since it is a new businesswill be special offers for the first new customers. This will assistin growing its reputation and attracting new clients. Otherstrategies that will be employed include using the word of mouth andreference sites. Magazines will also be engaged which will quote thebusiness in the trade shows and promotions.
Price:The prices considered will address all customers regardless of theirsocial class and status. Important to note is that every product hasits specific price which it will be retailing at. This also appliesto the services. Notably, prices will increase in due time based onenhanced quality of services and products that the business will beoffering. The business will, therefore, target its market audienceand concentrate on growing it.
Placement:This is as addressed in the marketing analysis which identifies thebest audience for the products and services including big corporationmanagers, small business owners, and homes.
Asnoted earlier, the next aspect of the business are the services beingoffered. These will involve auditing and installation of thepurchased products. To ensure success in this area of the business,communication is key which will entail first interacting with theclients. Consultation work is also considered efficient based on thereports and customer satisfaction. In this regard, professionalismwill be a key requirement. Through the business website, clients willhave the chance to look at what the business offers and thereforeengage with the company more easily.
Asindicated in the SWOT analysis, the greatest challenge likely toaffect the business is competition (Kononovicius, Gontis &Daniunas, 2012). There are several areas where competition may beexperienced. These includes international consultancy firms whichhave a well-established name. Another competitor is that which maycome in the future since the field is open for other players. Theabove-mentioned competitors are primary based. Considering some ofthe secondary competitors, they include house contractors andindividuals who advise the house owners during construction to applythe energy saving techniques. Other secondary competitors are brokersand middlemen between the business, clients, and manufacturingcompanies.
JB-Energyis an organization that deals with both products and services. This,therefore, implies that the market is huge from individuals to largecorporations. Essential to note is that in every organizationreducing the expenses remains a key aspect and the energy sector isidentified as an area where this can easily. Further, in the home setup, people aim at reducing the bills which therefore means thathomeowners are among the major shareholders.
Thedistribution of JB-Energy markets is as follows. The first majorgroup is the large scale corporations. These are organizations thathave been noted to pay more than half a million dollars in energyconsumption only. Reaching out to these managers is imperative since,in every organization, the management is tasked with reducing costwhile increasing profit. The next group is the small scale businesseswhich have less than twenty staffs. In these companies, they areestablishing themselves thus most of them will aim at ensuringminimal expenditure annually. The energy sector is, therefore, onearea where such a reduction can take place. Homeowners are the thirdshareholders who prefer employing strategies that can reduce theamount of energy being spent per month. Addressing such groups willinvolve proposing products such as energy savers and using solarenergy for appliances that consume a lot of energy (Ellabban, Abu-Rub& Blaabjerg, 2014).
Theenergy sector has been characterized by several dynamics among themsustainability and technology. In this regard, most of the targetmarket aims at using technology based products. This, therefore,implies that the business must invest in advanced technologicalproducts. Equally, there is an aspect of using technology in thebusiness operations which will enhance its operations.
Anotherkey trend in the current world is that most people are usingconsultancy to improve their business. This is evident in mostorganization embarking on temporary professionalism rather thanpermanent fixed cost employees (Kononovicius, Gontis & Daniunas,2012).
Accordingto the United States association of marketing consultants, theaverage revenues from consultancy are estimated at 30% growth. Theenergy sector, on the other hand, is identified as one of the mainsector for investment in the modern world. This, therefore, impliesan increase in the customers for the energy-related products andservices. Within the first year, therefore, the total number ofcustomers is estimated at 1000 clients. This is estimated to increaseby 20% annually thereafter.
Thisis the first activity of the business. Notably, the organization isfamily based thus the contribution will be even across all theinterested parties. Establishment will, therefore, begin byidentifying the business location, and taking all the legalprocedures required in the business such licenses and permits.
Thisinvolves setting up the necessary infrastructure including where thebusiness will be operating. There are two options which includerenting an area for the business or constructing one. Notably, sincethe business is located in town, it will be better to rent.
5.2Purchase of the Equipment
Thisentails all the necessary aspects to enable the business operationsuch as computers and furniture. This also includes the first stockof the energy related products such as the generators and solarpanels.
5.3Recruitment of Staff
Thisprocess will involve selecting the employees. This will be the mostchallenging aspect since it will require a keen evaluation of the newworkforce as they are the foundation of the success or failure of thebusiness. In this regard, several competencies will be applied whichinclude leadership, experience, and education. Essential to note isthat the first employees will be marketers for the purpose ofadvertising the business. However, the number of employees will belimited at first but will be increased in time.
5.4Launching the Business
Uponcompletion of the factors mentioned above, the business will belaunched according to the stipulated timeline. It is anticipated thatthe launch will be in April 2017.
Althoughthere are well-laid strategies to ensure the success of theorganization, there are challenges that involve various aspects suchas time and finances. These include
Increase in budget allocated
Issues related to time where the business may not be ready within the set period.
Failure to recruit effective workforce.
6.0Organizational Management and Structure6.1Business Objectives
Thebusiness objectives will involve both short and long term. Theorganization identifies short-term objectives as those which areattainable within the first three years. On the other hand, thelong-term goals are achievable after five years.
Attract customers within the first year with a target of 1000 clients
Have a profound workforce who will ensure the success of the organization
Becoming one of the leading organization locally
Becoming a benchmark
Sinceit is a family business, it will involve the board of directors asthe major shareholders in the business. These include all thecontributors in the initial capital of the business. Since it is anew business, the management workforce will be limited.
Thebusiness will have several managers among them financial, sales andmarketing and human resource. Every manager will be responsible fortheir departments and all details related to it. While the financemanager will handle all matters related to money, the human resourcewill be responsible for the workforce. The marketing department willbe responsible for the procurement and supply of the products. Inoverall will be the general manager whose responsibilities willinvolve overseeing all departments are performing according to therequirements as well as representing the organization to the board ofdirectors.
6.1.2Supervisors and Section Heads
Theseare individuals responsible for the specific areas within theorganization departments. They act as assistants to the managers andas the bridge between the management and workforce. Similarly, theyare few since the business is in its foundation phase. The numberswill increase with time.
Thiscomprises of the other employees with various roles in theorganization. This includes technicians to install the products,sales representatives, and consultants. Other personnel includessupport staff such as watchmen, sweepers, and tea servers.
JB-Energyis governed by a constitution that stipulates all relevantinformation regarding the business as well as various issues andconcerns and how they should be addressed. Some of these proceduresinclude the employment process as well as dismissal. The constitutionis as formed by the business founders but is bound to regular changes(Alvesson & Sveningsson, 2015). It is also an area where thebusiness culture is described such as workforce ethics and values.
Thebusiness will be operating in accordance with several legalframeworks such as the labor laws. In addition is payment of taxesand regular renewal of the license and operation permits. Other lawsand policies governing the business include good relationship betweenthe business and its workforce and how it should be maintained.
6.4Training and Promotion
Underthe constitution is an aspect that describes the regular training andpromotion of the workforce. This is aimed at increasing the operationof the business as well as motivating the workforce. Included hereinis an aspect of performance appraisal which ensures regular promotionand motivation of the workforce. Promotion, as indicated in theconstitution, is through recognition and salary increment.
Otheraspects that describe the organizational structure and cultureinclude being subject to regulatory frameworks. Additionally, withinthe organization is a description of how it deals with competitionand legal issues. In consideration also are factors such as insuranceand taxation which the organization is oblidged to.
7.0Financial Planning7.1Financial Objective
Variousfinancial aspects include growth of 20% annually, assetsdepreciating at a rate 10% annually, an initial investment of 10million US Dollars and a profit of 2 million US dollars within thefirst year.
Theinitial capital will be 10 million US Dollars contributed by threeshareholders with two major contributors of 4 million dollars eachand the third shareholder investing the remaining 2 million dollars
Asidentified above several aspects are characterizing the businesssetup with the cost distribution as below
Business set up budget
Cost (US Dollars)
Renovating the business building and setting it up as desired
Buying and Installation of the business operation equipment such as computers and furniture
Legal procedures such as licences and permits
Purchasing of first stock of energy-related equipment
Theprojection of business operation within the first year will also bedistributed across various sectors as indicated below
Cost (US Dollars)
Salary for all employees annually
Various bills such as electricity and water
Renting the business premises for one year
Fuel and maintenance of the vehicles annually
Purchase of office materials and minor services in the first year
Inany business, some of the imperative factors to consider are theunexpected which are also termed as contingencies. These are alsodescribed as the hidden costs within the business which are hard toaccount for such as risks and accidents. This amount takes intoaccount extra costs in the business which were not put intoconsideration. In this case, the amount set aside for contingencieswill be 3000000.
Thisplan is all about strategic implementation and enhancing it. However,there are several factors to put into consideration which act as acontrol to its success. These include effective workforce, changingtechnology and effective implementation of the programs. In all theseaspects, profound strategies are required to ensure a successfulbusiness
Thisforecast is based on optimum growth according to the anticipatedtarget market as outlined in the market analysis. Important toconsider is that the number of customers is expected to increase withtime to reach an estimate of 1000 people. This growth is as indicatedin the market growth section with an average of 80 new clients permonth. Another important aspect to note is that there are two mainsources of income consultancy and selling of the energy relatedproducts. Notably, the 80 people growth aspect is distributed amongthe large and small scale businesses and homeowners. The financialforecast is as following in the first one year
Product or service
Cost (US Dollars)
Large scale business (100)
Small scale businesses (400)
Large scale businesses
Small scale businesses
NetProfit = 2000000
Sinceit is a new business, a lot is anticipated to ascertain profitabilitywhich is centered on the finance department. This entails monthlyproduction of the financial reports including cash flow statements,balance sheet, and income statements (Titman, Keown & Martin,2015).
8.0Exit Strategy8.1Factors for Exit
Uponany of these factors, the business is subjected to closure. Theseinclude:
Order by the Court and regulatory bodies based on issues such as malpractice and violation of standard frameworks,
Decision by the board of directors who are the main shareholders to dissolve the business,
Upon any factor that may render the business impossible to continue its operation such as fire destroying 80% of the business,
Incase such an agreement to close the business is arrived at, theprocedure followed is as stipulated in the organizational structureand culture. The first step will be following all the legalprocedures where there must be a lawyer. The next step will be thedistribution of shares which will be done according to every personinvestment and shares. There is also a consideration of the workforcewho will equally be given shares in case of sudden closure of thebusiness.
8.3Dissolving the Assets
Uponthe decision to close the business, the assets will be sold and themoney distributed according to the investment shares. Notably, thecontribution to all the legal procedures and framework is also sharedaccording to the shareholder`s equity.
Thefollowing factors are essential to avoid business closure
Following all regulatory frameworks
Good relationship among all stakeholders
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